Value Fund
Overview
Objective
Seeks capital appreciation and, secondarily, current income.Strategy
Invests in a diversified portfolio of equity securities of companies that represent excellent value relative to their current price. The Fund seeks a higher return than the market index over time as the stocks it purchases rise in price to more normal valuations.The Management Team
The Fund is managed by the Equity Strategy Team, a group of senior-level investment professionals who average 38 years of experience.Risk/Return
LOW - - - • - - - HIGH
In general, greater returns are associated with greater risks.
Fund Statistics
| Inception Date | 03/03/97 |
|---|---|
| Ticker Symbol | CFVLX |
| Cusip | 200626828 |
| Minimum Initial Investment | $1,000 |
Commentary
| Total Fund Assets as of 6/30/2024 | $266,973,273 |
|---|---|
| Net Asset Value1 | $32.34 |
| Asset Allocation | |
| Equities | 99.6% |
| Cash | 0.4% |
| Weighted Average Market Capitalization | 166.4 Billion |
Holdings
Top Ten Equity Holdings2 as of 6/30/2024
| iShares Russell 1000 Value |
3.9% |
|---|---|
| Chevron Corporation
|
3.4% |
| JP Morgan Chase &; Company | 3.0% |
| Merck & Company Inc
|
2.3% |
| EOG Resources Inc | 2.0% |
| Amgen Inc
|
2.0% |
| Comcast Corporation
|
2.0% |
| Verizon Communications | 2.0% |
| Cisco Systems Inc | 2.0% |
| Wells Fargo & Company
|
2.0% |
Footnotes:
1. The Net Asset Value represents the assets of the fund (ex dividend) by the total number of shares.
2. The composition of the portfolio is subject to change in the future.
3. The Russell 1000 Value Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Index figures do not reflect any fees or expenses.
Portfolio Holdings
The Fund is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions.
Holdings and allocations shown are unaudited, and may not be representative of current or future investments. Holdings and allocations may not include the Fund's entire investment portfolio, which may change at any time. Fund holdings should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities.
A prospectus for the Commerce Funds containing more complete information may be obtained by calling 1-800-995-6365 or by downloading it from this website. Please consider a Fund's objectives, risks, and charges and expenses, and read the prospectus carefully before investing. The prospectus contains this and other information about the Fund.
The mutual funds referred to in this Web site are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectus contains more complete information about the funds, including charges and expenses, and should be read carefully before investing.
The method of calculation of the 30-Day Standardized Subsidized Yield is mandated by the Securities and Exchange Commission and is determined by dividing the net investment income per share earned during the last 30 days of the period by the maximum public offering price (“POP”) per share on the last day of the period. This number is then annualized. The 30-Day Standardized Subsidized Yield reflects fee waivers and/or expense reimbursements recorded by the Fund during the period. Without waivers and/or reimbursements, yields would be reduced. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders. The 30-Day Standardized Unsubsidized Yield does not adjust for any fee waivers and/ or expense reimbursements in effect. If the Fund does not incur any fee waivers and/or expense reimbursements during the period, the 30-Day Standard Subsidized Yield and 30-Day Standardized Unsubsidized Yield will be identical.
After the Russell 1000 Value Index hit an all-time high to end Q1, the index experienced a small pull-back during the second quarter. Value indices struggled to find footing amidst a slowing economy report and the prospects of interest rate cuts by the Federal Reserve pushed out to the latter part of the year. Recent commentary and inflation data continue to support the idea of a downward trend in interest rates historically providing a positive backdrop for equities. The Commerce Value Fund’s return of -2.04% outperformed the Russell 1000 Value Index return of -2.17%.
Stock selection added to the Fund’s performance. The Fund’s strongest contributors were Broadcom Inc. (1.78%), Oracle Corporation (1.93%), and Texas Instruments Incorporated (1.90%), returning 21.53%, 12.78%, and 12.46%, respectively. The Fund’s top detractors were Stanley Black & Decker Inc. (1.14%), Prologis Inc. (1.90%), and Illinois Tool Works Inc. (1.91%), returning -17.63%, -13.01%, and -11.17%, respectively.
The Fund’s sector allocation added to returns for the quarter. The Fund’s 2.44% overweight in the Information Technology sector, which returned -1.15%, added to performance as it was a stronger sector. The Index had an 9.30% weight in the Information Technology sector. However, the Fund’s 1.16% overweight position in the Consumer Discretionary sector hurt performance as it was the weakest sector, losing -7.47% for the quarter. The Index had an 4.83% weight in the Consumer Discretionary sector.